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reported, yielding an adjusted gross income of $48,724.
Petitioner entered "-0-" on line 50, Tax on qualified retirement
plans (including IRAs) and MSAs. He did not attach Form 5329,
Additional Taxes on Qualified Plans (Including IRAs) and Other
Tax-Favored Accounts, to his return.
In the notice of deficiency and accompanying explanations,
respondent determined that the 10-percent additional tax under
section 72(t) was due on the premature distribution from the
United States Trust Co. of America. In the amendment to answer,
respondent claims the $17,900 paid by petitioner to his former
wife is not deductible as alimony.
The first issue is whether petitioner is liable for the 10-
percent additional tax on the distribution from the qualified
retirement plan under section 72(t)(1). Section 72(t) provides
for a 10-percent additional tax on early distributions from
qualified retirement plans, as follows:
(1) Imposition of additional tax.-–If any taxpayer
receives any amount from a qualified retirement plan (as
defined in section 4974(c)), the taxpayer’s tax under this
chapter for the taxable year in which such amount is
received shall be increased by an amount equal to 10 percent
of the portion of such amount which is includible in gross
income.
The term “qualified retirement plan” includes any plan described
in section 401(a), which includes qualified stock bonus plans
such as the ESOP in which petitioner participated. Sec.
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Last modified: May 25, 2011